Hibernia REIT (ISE: HBRN) shareholders lost 4.5%, while shares fell 5.8% last week

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While this may not be enough for some shareholders, we think it’s good to see the Hibernia Plc REIT (ISE: HBRN) share price up 11% in single quarter. But it doesn’t help that the three-year return is less impressive. In fact, the stock price has fallen 14% over the past three years, well below market performance.

Since the past week has been tough for shareholders, let’s take a look at the fundamentals and see what we can learn.

Check out our latest review for Hibernia REIT

It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. By comparing earnings per share (EPS) and changes in the share price over time, we can get a sense of how investor attitudes towards a company have changed over time.

Hibernia REIT has seen its stock price decline over the three years in which its EPS also plummeted, falling at a loss. Extraordinary elements contributed to this situation. Due to the loss, it is not easy to use EPS as a reliable guide for the business. But it’s safe to say that we generally expect the stock price to be lower as a result!

The company’s earnings per share (over time) is shown in the image below (click to see exact numbers).

ISE: HBRN Growth in earnings per share August 24, 2021

Before buying or selling a stock, we always recommend a careful review of historical growth trends, available here.

What about dividends?

When considering investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any discounted demerger or capital increase, as well as any dividend, based on the assumption that dividends are reinvested. So, for companies that pay a generous dividend, the TSR is often much higher than the return on the share price. In the case of Hibernia REIT, it has an RTA of -4.5% for the past 3 years. This exceeds the return on its share price that we mentioned earlier. The dividends paid by the company thus boosted the total shareholder return.

A different perspective

Hibernia REIT shareholders achieved a total return of 14% during the year. But this yield is lower than the market. On the bright side, it’s still a gain, and it’s actually better than the 1.7% average return over half a decade. It is possible that returns will improve with company fundamentals. It is always interesting to follow the evolution of stock prices over the long term. But to better understand Hibernia REIT, there are many other factors that we need to consider. However, be aware that Hibernia REIT shows 1 warning sign in our investment analysis , you must know…

But beware : Hibernia REIT may not be the best stock to buy. So take a look at this free list of interesting companies with past earnings growth (and new growth forecasts).

Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks that currently trade on the IE exchanges.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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